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India
sets merchandise export target at $92 bn
Mumbai: The government has set a target of $92 billion
for merchandise export for the current fiscal and has
also said that the high trade deficit seen in April was
"not a matter of concern."
"We
have set a merchandise export target of $92 billion for
this fiscal and we are hoping that the total global engagement
of the Indian economy touches the $500 billion mark,"
Union Commerce Minister Kamal Nath said, while talking
to reporters on the sidelines of an international diamond
conference in Mumbai.
The
country's total merchandise export stands at $80 billion
in 2004-05 while its engagement in the global economy
is at $180 billion, he said. Referring to mounting imports
in April and the issue of trade deficit, the Minister
said, "trade deficit is not a matter of concern as
growth is on the right track. Even strong economies like
US have high trade deficits."
The
trade deficit in April jumped three-fold to $3.85 billion
dollars from $1.29 billion dollars in April 2004. Exports
rose to $6.56 billion dollars during April compared to
$5.60 billion in April 2004-05. Imports jumped to $10.42
billion dollars against $6.90 billion dollars during the
same month a year ago.
"The
economy is on a growth trajectory and our total exports
are rising. We are venturing into newer markets in the
CSI countries and sectors like leather and fruits are
growing strong," he said.
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RBI
report: Centre's revenue deficit to rise
New Delhi: The Centre's revenue deficit is expected
to go up by 0.75 per cent of GDP this fiscal following
implementation of the 12th Finance Commission (TFC) recommendations,
RBI has said in its monthly bulletin for May .
"The
revenue deficit will increase due to higher devolution
in the form of an increase in the states' share in central
taxes, a rise in grants-in-aid to states and other relief
measures as recommended by the commission," the Reserve
Bank of India said.
According
to the apex bank, two significant developments have put
considerable strain on the realisation of Fiscal Responsibility
and Budget Management (FRBM) targets for 2005-06 in respect
of revenue deficit and gross fiscal deficit.
The
first development relates to discontinuance of disinvestment
proceeds to finance budgetary expenditure. The second
major challenge faced by Central Government in fiscal
consolidation endeavour was to absorb fiscal impact to
the tune of 0.75 per cent of GDP in revenue deficit due
to higher devolution to states as a result of TFC report.
The Centre has also made a provision of Rs5,000 crore
as compensation to the states on account of any possible
revenue loss due to VAT, the report said.
Against
this backdrop, while the Budget conceded difficulty in
adhering to the FRBM path during 2005-06, it is committed
to resume the process of fiscal correction with effect
from 2006-07 and achieve the FRBM goals by 2008-09, RBI
said.
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FIEO:
Rise in Chinese export tariffs to be India's gain
New Delhi: The Federation of Indian Export Organisations
(FIEO) has said that China's move to raise export tariffs
on textiles to avoid confrontation with the US and the
EU will benefit Indian textile exports to the two regions.
The FIEO said in a statement that much of the increase
in Chinese exports was due to "unfair trade practices
like export tax rebates, non-tariff loans and currency
manipulation." Loss of markets for China would definitely
propel Indian exports as Indian exporters are already
entrenched in the US market and would become further competitive,
the statement has said.
China has raised export tariffs on textiles (on 74 product
types) that would be effective from June 1. The US had
imposed quota to limit growth of imports from China to
7.5 per cent a year.
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